Correlation Between AbraSilver Resource and GCM Mining
Can any of the company-specific risk be diversified away by investing in both AbraSilver Resource and GCM Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AbraSilver Resource and GCM Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AbraSilver Resource Corp and GCM Mining Corp, you can compare the effects of market volatilities on AbraSilver Resource and GCM Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AbraSilver Resource with a short position of GCM Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AbraSilver Resource and GCM Mining.
Diversification Opportunities for AbraSilver Resource and GCM Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AbraSilver and GCM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AbraSilver Resource Corp and GCM Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Mining Corp and AbraSilver Resource is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AbraSilver Resource Corp are associated (or correlated) with GCM Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Mining Corp has no effect on the direction of AbraSilver Resource i.e., AbraSilver Resource and GCM Mining go up and down completely randomly.
Pair Corralation between AbraSilver Resource and GCM Mining
Assuming the 90 days horizon AbraSilver Resource Corp is expected to generate 1.33 times more return on investment than GCM Mining. However, AbraSilver Resource is 1.33 times more volatile than GCM Mining Corp. It trades about 0.03 of its potential returns per unit of risk. GCM Mining Corp is currently generating about 0.02 per unit of risk. If you would invest 134.00 in AbraSilver Resource Corp on September 13, 2024 and sell it today you would earn a total of 43.00 from holding AbraSilver Resource Corp or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 29.09% |
| Values | Daily Returns |
AbraSilver Resource Corp vs. GCM Mining Corp
Performance |
| Timeline |
| AbraSilver Resource Corp |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AbraSilver Resource and GCM Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AbraSilver Resource and GCM Mining
The main advantage of trading using opposite AbraSilver Resource and GCM Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AbraSilver Resource position performs unexpectedly, GCM Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GCM Mining will offset losses from the drop in GCM Mining's long position.| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. Metallic Minerals Corp | AbraSilver Resource vs. Summa Silver Corp | AbraSilver Resource vs. Honey Badger Silver |
| GCM Mining vs. Silver Tiger Metals | GCM Mining vs. Defiance Silver Corp | GCM Mining vs. Summa Silver Corp | GCM Mining vs. AbraSilver Resource Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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